Polycab Sees Copper Price Support Amidst Intensifying Competition in Wires Market

Polycab India is facing increased competition in the wires and cables market following UltraTech Cement's entry into the sector through Ultravolt. The company, which holds an estimated 30-31% market share, may see support from copper-led pre-buying in its Q2 FY27 performance.

The recent launch of Ultravolt has introduced competitive pressure on Polycab, with the new entrant focusing initially on wires. However, cables account for roughly 70-75% of Polycab's mix, and industrial and power-transmission cables have higher entry barriers due to pre-qualification requirements.

Higher copper prices could provide support to Polycab's revenue in Q2 FY27 as dealers may increase purchases ahead of potential price revisions. This commodity-led effect was visible in Q1 FY27 when Polycab's consolidated revenue increased 39% year-on-year to Rs 8,210 crore.

The company's Q2 FY27 results will provide a clearer indication of whether higher copper prices translated into stronger underlying volumes and maintained profitability as competition intensifies.